Oct 27, 2017 - ... development of order intake in all business groups. ⢠+6% vs. previous year, +7% in local currencie
Investor Update 2017 . Investor . . presentation, . . . . October . . . 27,. 2017 . . . . . . . . . . . . . . . Dr. Norbert Klapper, Group CEO . Joris . Gröflin, . .Group. CFO. . . . . . . .
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Rieter Group – Key Messages
Order intake up on previous year Third quarter with order growth in all business groups Rieter confirms outlook for the financial year 2017: Sales of around 980 million CHF, EBIT margin (before restructuring charges) between 4.5% to 5.5% expected
Investor Update 2017, October 27, 2017
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Agenda
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1. Market trends and order intake 2017
Dr. Norbert Klapper/ Joris Gröflin
2. Strategic focus
Dr. Norbert Klapper
3. Outlook 2017
Dr. Norbert Klapper
. . . . . . . . .
Investor Update 2017, October 27, 2017
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Orders by Business Group ‒ Nine Months Orders received grown by 6% compared to previous year Million CHF
800 700
+6% 765
718
600 500
•
Positive development of order intake in all business groups
•
+6% vs. previous year, +7% in local currencies, +4% w/o acquisitions
•
Market success in several Asian countries, increased demand in China as well as second quarter in a row with increase in Turkey
•
Strong demand for classical ring spinning systems
490
478
400 300 200 100
116
103 137
159
Jan. Sep. 2016
Jan. Sep. 2017
0
Machines & Systems After Sales Investor Update 2017, October 27, 2017
Components
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Rieter Group – Orders Received in Q3 Growth in Q3 driven by all Business Groups Million CHF
Orders received Machines & Systems
After Sales
Q3 2017 (Q3 2016) 164. 9 (134.2)
38.0 (32.0)
Q3 Q3 2017 vs. 2016
+30.7
+6.0
Components
66.8 (41.5)
+25.3
Rieter Group
269.7 (207.7)
+62.0
Investor Update 2017, October 27, 2017
• Strong order intake from several Asian countries • China and India with restrained demand • Increasing demand from Turkey • Higher order intake for after sales services • Installation services with increase • Continued momentum with demand for parts • Regionally broad-based order intake with increase in China and other Asian countries • SSM Textile Machinery contributing 19.2 million CHF orders received in Q3
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Agenda
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1. Market trends and order intake 2017
Dr. Norbert Klapper/ Joris Gröflin
2. Strategic focus
Dr. Norbert Klapper
3. Outlook 2017
Dr. Norbert Klapper
. . . . . . . . .
Investor Update 2017, October 27, 2017
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Strategic Focus Rieter is the world's leading supplier of short staple spinning systems offering the full range of machines, parts and components Creating customer value through •
system expertise
•
innovative solutions
•
after sales excellence
•
global presence
Generating profitable growth and value for shareholders over the cycle Enabling employees to achieve superior results and to enjoy work
Investor Update 2017, October 27, 2017
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Update on Strategic Milestones Significant milestones realized in third quarter of 2017 Acquisition of SSM
Restructuring of Ingolstadt
Redesign of Winterthur location
• Integration on track
• Focusing on the development of machines
• Concentration on 30 000 m2 (of 100 000 m2)
• Relocation of production to Rieter Usti, Czech Republic
• Study competition started, results expected in March 2018
• Expected cost reductions of over 15 million CHF from 2019
• Final decision by Rieter Board of Directors during 2018
• Innovation and technology synergies in precision winding
• Restructuring cost and impairment charges of 36 million CHF in 2017 Investor Update 2017, October 27, 2017
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Strategic Focus – Mid-Term Targets
Sales
Sales growth above market
EBIT margin1)
~10%
RONA2)
~14%
Dividend policy
Target pay-out ratio of at least 40% of net profits
1) At sales of ~1.3 CHF bn 2) RONA is calculated as net result before interest costs and write-off of financial assets divided by net assets excl. financial debt Investor Update 2017, October 27, 2017
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Agenda
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
. . . . . . . . .
1. Market trends and order intake 2017
Dr. Norbert Klapper/ Joris Gröflin
2. Strategic focus
Dr. Norbert Klapper
3. Outlook 2017
Dr. Norbert Klapper
. . . . . . . . .
Investor Update 2017, October 27, 2017
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Outlook 2017 •
As communicated in July, in 2017 Rieter expects slightly higher sales than in the previous year and an EBIT slightly below the prior year level (before restructuring charges), due to the product and country mix. For the whole of 2017, Rieter anticipates sales in the region of CHF 980 million and operating profitability (EBIT margin) of 4.5% to 5.5% before restructuring charges. The restructuring charges amount to CHF 36 million. As a result, Rieter expects a net profit of around 1% to 2% of sales for the 2017 financial year.
•
Rieter anticipates that demand will continue at the good level of recent months.
Investor Update 2017, October 27, 2017
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Financial Calendar
Publication of sales 2017: Deadline for proposals regarding the agenda of the Annual General Meeting: Results press conference 2018: Annual General Meeting 2018:
Semi-annual report 2018:
Investor Update 2017, October 27, 2017
January 31, 2018 February 22, 2018 March 13, 2018 April 5, 2018
July 19, 2018
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Disclaimer
Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever for the use of it. The information provided in this document is not intended nor may be construed as an offer or solicitation for the purchase or disposal, trading or any transaction in any Rieter securities. Investors must not rely on this information for investment decisions. All statements in this report which do not reflect historical facts are forecasts for the future which offer no guarantee whatsoever with respect to future performance; they embody risks and
uncertainties which include – but are not confined to – future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside the company's control.
Investor Update 2017, October 27, 2017
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Appendix
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Investor Update 2017, October 27, 2017
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Values and Principles
Investor Update 2017, October 27, 2017
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Order Intake per Business Group
CHF million
Jan. – Sept. 2017
Jan. – Sept. 2016
Difference
Difference Difference in without local currency acquisitions
Rieter
765.0
718.4
6%
7%
4%
Machines & Systems
490.1
477.6
3%
3%
3%
After Sales
115.8
103.3
12%
12%
12%
Components
159.1
137.5
16%
15%
1%
Investor Update 2017, October 27, 2017
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Rieter – Financial Key Figures EBITDA margin at 8.4% of sales Million CHF
HY1 2017 HY2 2016 HY1 2016
FY 2016
Order Intake
495.2
394.5
510.7
905.2
Sales
415.2
508.1
436.9
945.0
34.8
61.4
34.4
95.8
8.4%
12.1%
7.9%
10.1%
16.0
40.8
15.7
56.5
3.9%
8.0%
3.6%
6.0%
Net profit
10.9
31.7
11.0
42.7
R&D expenditures
22.8
23.6
24.4
48.0
7.7
20.2
10.7
30.9
-125.61
71.8
4.5
76.3
EBITDA EBITDA margin (of sales)
EBIT EBIT margin (of sales)
Capex Free cash flow
• Cumulated Q3 2017 order intake at 765.0 million CHF (Q3 2016: 718.4 million CHF)
1 Acquisition of SSM Textile Machinery as of June 30, 3017 Investor Update 2017, October 27, 2017
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